for agent use only – not for use with the public mission: allianz life is the leading innovator of...

For agent use only – not for use with the publicMission: Allianz Life is the leading innovator of financial solutions for consumers who want protection, income, and the guidance of a trusted financial professional

Allianz Life Insurance Company of North America

Allianz Life Insurance TrainingGENDEX MOMENTUM

For agent use only – not for use with the public


Allianz LIFE Products

Term 10 – 20 - 30 year (ROP)Generation Planner – Low cost UL

Legacy Planner – Simplified Underwriting GenDex Momentum – Cash Value GenDex Survivor – Second to Die


GenDex MomentumSM Life Insurance Policy

• Crediting Methods

• Policy specs

• Six case studies

• Software

Agenda


What makes FIUL different?



Other “moving parts”:Participation rate

- 10% index increase x 100% participation = 10% return



Cap- 10% index increase with an 8% cap = 8% return

- 10% index increase with a 14% cap = 10% return

Fees- 10% index increase with a 3% fee = 7% return



Three words: Indexed interest potential

Cash value earns interest based on external index(es).

Universal Life Policy

Fixed Interest 5.25%

S&P 500

NASDAQ 100

EUROSTOXX 50

Blended Index



Three words: Indexed interest potential. Positive index return is credited to policy1

Gains are locked in each yearNegative index return equals 0% return on policy.



Crediting interest

4 Crediting Methods- Annual point-to-point

No single crediting method is best in all situations


The hypothetical example is used to illustrate the crediting method only. It does not represent any specific product or past performance. Actual performance will vary. This is not a guarantee of future results.

930940950960970980990

1000

1010

1020

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1040

1050

1060

1070

1080

1090

1100

1110

Annual point-to-point

End Year 1

1083

1000




Crediting interest

4 Crediting Methods- Annual point-to-point- Monthly sum- Monthly average- Fixed interest




930940950960970980990

1000

1010

1020

1030

1040

1050

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1070

1080

1090

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Monthly point-to-point

End Year 1



Monthly sumAssumed cap is 3.40%

MonthHypotheticalmonthly index change

Cappedmonthly change

1 5.27 +3.402 -2.00 -2.003 2.00 +2.004 -1.50 -1.50

10 -4.00 -4.009 -3.00 -3.00

5 4.61 +3.406 2.50 +2.507 3.87 +3.408 0.25 +0.25

11 4.43 +3.4012 2.25 +2.25

(The sum of capped monthly changesequals the year’s indexed interest.) +10.10%





Crediting interest





930940950960970980990

1000

1010

1020

1030

1040

1050

1060

1070

1080

1090

1100

1110

Monthly Average

End Year 1

1020

1000


10451025

1015

985

997

1023

1027

1055

1050

1060

1081

1020

1000

1045

1025

1015

985

997

1023

1027

1055

1050

1060

1081



Hypothetical example used to illustrate crediting method only. Does not represent any specific product or past performance. Actual performance will vary. Not a guarantee of future results.

Monthly average



Crediting interest




Allianz GenDex MomentumSM Life Insurance Policy

The Dow Jones EURO STOXX 50 Index's stated objective is to provide a blue-chip representation of leading corporations in the Eurozone. The index covers 50 stocks from 12 Eurozone countries: Austria, Belgium, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, the Netherlands, Portugal and Spain.

The Dow Jones Euro STOXX 50® is the intellectual property (including registered trademarks) of Stoxx Limited, Zurich, Switzerland and/or Dow Jones & Company, Inc., a Delaware corporation, New York, USA, (the "Licensors"), which is used under license. The financial instruments based on the Index are in no way sponsored, endorsed, sold or promoted by the Licensors and neither of the Licensors shall have any liability with respect thereto.

The Dow Jones Industrial Average is a popular indicator of the stock market based on the average closing prices of 30 active U.S. stocks representative of the overall economy.

Lehman Brothers Aggregate Bond Index is a market value-weighted index of investment-grade fixed-rate debt issues, including government, corporate, asset-backed and mortgage securities, with maturities of one year or more.

Russell 2000® Index is an equity index representing 2,000 of the smallest companies within the larger Russell 3000® Index. Often looked at as one benchmark for small stock investors. Russell 2000 is a registered service mark of Frank Russell Company.

Blended indexDow Jones Industrials (35%), Lehman Aggregate Bond

(35%), Euro STOXX 50 (20%), Russell 2000 (10%)


YearBlended

Index – no caps, no floor

Blended Index 215% par. rate & 0% floor


Dec 1988 15.75% 20.89% 2.43%

Dec 1989 21.45% 26.65% 3.10%

Dec 1990 -4.90% 0.00% 0.00%

Dec 1991 20.37% 27.89% 3.24%

Dec 1992 6.36% 7.93% 0.92%

Dec 1993 17.65% 20.15% 2.34%

Dec 1994 -2.16% 0.00% 0.00%

Dec 1995 23.62% 26.91% 3.13%

Dec 1996 16.41% 16.24% 1.89%

Dec 1997 20.72% 27.95% 3.25%

This example is provided for illustrative purposes only. Past performance is not an indication of future results.

Based on actual blended index returns. Assumes GenDex Momentum was available in 1988.

YearBlended

Index – no caps, no floor



Dec 1998 14.73% 19.12% 2.22%

Dec 1999 19.85% 17.04% 1.98%

Dec 2000 0.95% 0.00% 0.00%

Dec 2001 -3.48% 0.00% 0.00%

Dec 2002 -11.90% 0.00% 0.00%

Dec 2003 17.97% 12.46% 1.45%

Dec 2004 5.70% 2.34% 0.27%

Dec 2005 5.23% 2.94% 0.34%

Dec 2006 11.94% 11.58% 1.35%

Dec 2007 5.77% 9.32% 1.08%

Protection with potential: monthly average crediting with allocation to blended index

The chart below illustrates the performance of GenDex Momentum over the past 20 years using monthly average crediting of the blended index. The columns indicate the year sampled, actual historical index performance for that year, and corresponding GenDex Momentum annualized monthly average credits based on an assumed 175% participation rate, 0% floor, and a 10-year death benefit guarantee. Also illustrated are the credits using the 25% minimum guaranteed participation rate.


Annualpoint-to-point

Monthly average

Monthly sum

S&P 500 Yes N/A YesNasdaq 100 Yes N/A YesEuro STOXX 50 Yes N/A YesBlended Index Yes Yes N/A


Added flexibilityCan reallocate on every contract anniversary

Allocations can be made in 1% increments


GenDex Momentum provides:

A death benefit to the beneficiaries

NEW! Index choices (230% par. rate on monthly average!)

Higher caps and illustrated rates

Higher target premium (25%-30%)

Shorter surrender periods

Enhanced Early Liquidity


The GenDex Series can help provide solutions for:

#1 - Supplemental Retirement Income

#2 - Family Planning Strategies

#3 - Universal Life Insurance Policy Rescue Strategy

#4 - College Funding

#5 - Wealth Transfer (single premium)

#6 - Business Planning Strategies- Executive Bonus Plan

#7 - Charitable Giving

#8 - Business Succession Planning Strategies - Buy/Sell


Case Study #1: Supplemental Retirement Income

Jim and Lori, both are healthy and 45 years old

Two children

Jim recently got a promotion at work

Their total annual income is now $180,000

Jim & Lori each used to contribute $4,000/yr to Roth IRAs

They just recently purchased a new home with a $300,000 mortgage

This hypothetical example is provided for illustrative purposes only. Characters are fictional and are not actual Allianz clients.



Here is an example of how GenDex Momentum could be a good fit for Supplemental Retirement Income

Assumptions:

45 year old male Preferred Plus Non-Tobacco Risk Class

Face amount = $300,000

Over fund the policy with $8,000 of annual premium- Target annual premium $5,023.50

- Max non-MEC premium is $14,230.58

Pay to age 65 and then take retirement income 66-85




Case Study #2: Family Planning Strategies

Dave and Katie are both healthy and 35 years old

They have one child with another on the way

Katie is a stay at home mom

Dave’s annual income is $110,000

Dave and Katie currently own a home with about $150,000 left on their mortgage




Here’s an example of how GenDex Momentum could be a good fit for Family Planning StrategiesAssumptions: 35 year old male Super Preferred Non-Tobacco Risk Class Face amount=$250,000 Add Additional Term Rider1 of $250,000 for 30 years to give Dave extra

death benefit at a more reasonable cost than with traditional cash value insurance

Add Child Term Rider1 ($10,000) to cover children Add Other Insured Term Rider1 for $250,000 to provide life insurance

coverage for Katie (Super Preferred Non-Tobacco)

1 Riders are available at an additional cost.This hypothetical example is provided for illustrative purposes only. Characters are fictional and are not actual Allianz clients.



Case Study #3: Universal Life Insurance Policy Rescue Strategy Edward is 50 years old in good health He purchased $200,000 current interest UL policy 15 years ago from

ABC Insurance Company - paying $200/month. Originally interest rate = 10% Current interest rate = 4% Cash surrender value = $25,000 If Edward continues to pay $200/month, his policy will lapse at age 70

based on the current 4% interest. Edward’s goal is to have a policy build cash value and run to age 100.




Here’s an example of how GenDex Momentum would be a good fit for a

Universal Life Insurance Policy Rescue Strategy

Assumptions:

50 year old male Preferred Plus Non-Tobacco

Face amount of $200,000

1035 exchange of $25,000 into GenDex Momentum

Continue to pay $200/month

GenDex Momentum will help accomplish Edward’s goals by utilizing an FIUL policy with potential cash value accumulation




Case Study #4: College FundingPatty is a single mother 30 years old, very healthy.Has a 2 year old daughter named Emma.Patty would like to provide college funding for Emma when

Emma turns age 18.Her budget allows her to contribute $5,000/year for life

insurance coverage and college savings. Patty anticipates Emma will be in college for 5 years




Case Study #5: Wealth Transfer

Arthur is 60 years old and in average health.He has $500,000 that he would like to pass on to his

beneficiaries. It is important that the $500,000 continues to accumulate

before he passes it on. Arthur would like to be able to access that $500,000 in case

he needs extra cash for emergencies, LTC, retirement, etc.




Here’s an example of how GenDex Momentum could be a good fit for Wealth Transfer

Assumptions:

60 year old male Standard Nontobacco

Single pay premium of $500,000 (MEC)

Minimize death benefit to potentially increase accumulation potential

Initial death benefit = $1,055,000 (minimum face)

The LTC Rider can be added at an additional costThis hypothetical example is provided for illustrative purposes only. Characters are fictional and are not actual Allianz clients.



Here’s an example of how GenDex Momentum could be a good fit for College Funding

Assumptions:

30 year old female Preferred Plus Non-Tobacco Risk Class

Face amount=$250,000

Pay $5,000 for 15 yrs (until Emma turns 18)

Take income from yrs 16-20 (for five years of college)




Case Study #6: Business Planning Strategies

XYZ Company uses Executive Bonus (Section 162) Plans to attract, motivate, and retain key employees

Roger, a 45 year old key executive of XYZ Company, has elected to participate in the Executive Bonus Plan.

When XYZ hits their goals each year, they agreed to contribute $100,000 into Roger’s plan.

Roger needs life insurance to protect his family and to help him save for retirement.




Here’s an example of how GenDex Momentum would be a good fit for Executive Bonus (section 162) Business Planning

Assumptions:

45 year old male Preferred Plus Nontobacco

XYZ Company plans to pay $100,000/year to Roger’s age 65

Roger will take retirement income from ages 66-85

Roger needs $6,000,000 in life insurance




Thank you for your time.Allianz Life Insurance Company of North America

For agent use only – not for use with the public

for agent use only – not for use with the public mission: allianz life is the leading innovator of...

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